For
services rendered in Canada, any payment received is subject to a 15%
tax withholding, which must be remitted to the person making the
payment. This withholding is a payment on account of the
corporation`s potential tax liability to Canada. To pay any
balance owing or to obtain a refund of any overpaid amounts, the
corporation must file a T2 return with the CRA.
Failure
to File
A
non-resident corporation will be subject to a failure to file penalty
equal to the greater of
This
penalty applies if the amount calculated is more than the amount of
penalty usually applied under subsection 162(1) and (2).
GST
US
corporations who are nonresidents in Canada and are carrying on
business in Canada must register for GST/HST purposes if they make
taxable supplies in Canada.
